Monday , September 26 2022
FG Generates N1.18 Trillion VAT in 6 Months

FG Generates N1.18 Trillion VAT in 6 Months

The federal government has generated  a total of N1.188 trillion as Value Added Tax (VAT) in the first six months on 2022.

Data from the National Bureau of Statistics (NBS) indicated that was 18.14 per cent increase compared to the N1.0 trillion generated in the first quarter of 2021.

A quarter-on-quarter breakdown of the VAT showed that the country generated N600.15 billion in the second quarter of 2022. The figure represented an increase of 1.96 percent from the N588.59 billion generated in Q1 2022.

The NBS said this in its latest sectoral distribution of value-added tax for Q2 2022, released on Saturday. According to the report, local payments of VAT amounted to N359.12 billion in Q2 2022.

“On the aggregate, value-added tax (VAT) for Q2 2022 was reported at N600.15 billion, showing a growth rate of 1.96 percent on a quarter-on-quarter basis from N588.59 billion in Q1 2022,” the report reads.

“Local payments recorded were N359.12 billion, while foreign VAT payment contributed N111.13 billion in Q2 2022.

Also Read: Nigerians to Pay VAT for Digital Services – FG

“On a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate with 116.47 per cent, followed by accommodation and food service activities with 42.44 per cent.

The report added that activities of extraterritorial organisations and bodies had the lowest growth rate with -42.39 per cent, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with -36.57 per cent.

On sectoral contributions, the top three largest shares in Q2 2022 were manufacturing with 33.08 per cent; information and communication with 18.98 percent; and mining and quarrying with 10.60 per cent.

Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.03 per cent, followed by activities of extraterritorial organisations and bodies with 0.05 percent, and water supply, sewerage, waste management and remediation activities with 0.13 per cent.

However, on a year-on-year basis, VAT collections in Q2 2022 increased by 17.16 per cent from Q2 2021.
VAT is a consumption tax which is administered by the Federal Inland Revenue Service (FIRS).

Revenue generated from VAT is usually disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).

The 7.5 per cent VAT rate became effective on February 1, 2020.

 

About Bukola Olanrewaju

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